1325
Rules and Regulations
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
DEPARTMENT OF AGRICULTURE
Rural Housing Service
7 CFR Part 1924
RIN 0575–AC60
Surety Requirements
AGENCY: Rural Housing Service, USDA.
ACTION: Direct final rule.
SUMMARY: The Rural Housing Service is
amending its regulations to change the
threshold for surety requirements
guaranteeing payment and performance
from a $100,000 contract amount to the
maximum Rural Development Single
Family Housing area lending limit. This
limit will vary by locality. This will
liberalize the requirement for surety and
take into account the increased
construction cost of single family homes
in Rural Development’s Single Family
Housing Program. This will ease the
burden on small contractors for whom
obtaining surety is difficult and
expensive, thereby reducing costs to our
single family housing borrowers.
DATES: This rule is effective April 7,
2005, unless we receive written adverse
comments or written notices of intent to
submit adverse comments on or before
March 8, 2005. If we receive such
comments or notices, we will publish a
timely document in the Federal Register
withdrawing the direct final rule.
ADDRESSES: You may submit adverse
comments or notice of intent to submit
adverse comments to this rule by any of
the following methods:
• Agency Web site: http://
rdinit.usda.gov/regs/. Follow the
instructions for submitting comments
on the Web site.
• E-Mail: comments@usda.gov.
Include the RIN number (0575–AC60) in
the subject line of the message.
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow the
instructions for submitting comments.
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Federal Register
• Mail: Submit written comments via
the U.S. Postal Service to the Branch
Chief, Regulations and Paperwork
Management Branch, U.S. Department
of Agriculture, STOP 0742, 1400
Independence Avenue, SW.,
Washington, DC 20250–0742.
∑ Hand Delivery/Courier: Submit
written comments via Federal Express
Mail or another mail courier service
requiring a street address to the Branch
Chief, Regulations and Paperwork
Management Branch, U.S. Department
of Agriculture, 300 7th Street, SW., 7th
Floor, Suite 701, Washington, DC 20024.
All written comments will be
available for public inspection during
regular work hours at the 300 7th Street,
SW., address listed above.
FOR FURTHER INFORMATION CONTACT:
Michel Mitias, Technical Support
Branch, Program Support Staff, Rural
Housing Service, U.S. Department of
Agriculture, STOP 0761, 1400
Independence Avenue, SW.,
Washington, DC 20250–0761;
Telephone: (202) 720–9653; FAX (202)
690–4335; E-mail:
michel.mitias@usda.gov.
SUPPLEMENTARY INFORMATION:
Classification
This rule has been determined to be
not significant for purposes of Executive
Order 12866 and, therefore, has not
been reviewed by the Office of
Management and Budget (OMB).
Civil Justice Reform
In accordance with this rule: (1) All
State and local laws and regulations that
are in conflict with this rule will be
preempted, (2) no retroactive effect will
be given to this rule, and (3)
administrative proceedings in
accordance with 7 CFR part 11 must be
exhausted before bringing suit in court
challenging action taken under this rule,
unless those regulations specifically
allow bringing suit at an earlier time.
Regulatory Flexibility Act
The Administrator of the Rural
Housing Service has determined that
this rule will not have a significant
economic impact on a substantial
number of small entities as defined in
the Regulatory Flexibility Act (5 U.S.C.
601 et seq.). New provisions included in
this rule will not impact a substantial
number of small entities to a greater
extent than large entities. Therefore, a
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Vol. 70, No. 5
Friday, January 7, 2005
regulatory flexibility analysis was not
performed.
Paperwork Reduction Act
There are no new reporting and
recordkeeping requirements associated
with this rule.
Unfunded Mandates Reform Act
This rule contains no Federal
mandates (under the regulatory
provisions of Title II of the Unfunded
Mandates Reform Act of 1995) for State,
local, and tribal governments or the
private sector. Thus, this rule is not
subject to the requirements of sections
202 and 205 of the Unfunded Mandates
reform Act of 1995.
Environmental Impact Statement
This document has been reviewed in
accordance with 7 CFR part 1940,
subpart G, ‘‘Environmental Program.’’
RHS has determined that this action
does not constitute a major Federal
action significantly affecting the quality
of the human environment, and, in
accordance with the National
Environmental Policy Act of 1969,
Public Law 91–190, an Environmental
Impact Statement is not required.
Programs Affected
The programs affected are listed in the
Catalog of Federal Domestic Assistance
under Number 10.410, Very Low to
Moderate Income Housing Loans, and
Number 10.415, Rural Rental Housing
Loans. Rural Rental Housing Loans will
be affected for those construction
contracts above the applicable Rural
Development area loan limit.
Intergovernmental Review
RHS conducts intergovernmental
consultation in the manner delineated
in RD Instruction 1940–J,
‘‘Intergovernmental Review of Rural
Development Programs and Activities,’’
and in 7 CFR part 3015, subpart V. The
Very Low to Moderate Income Housing
Loans Program, Number 10.410, is not
subject to the provisions of Executive
Order 12372, which requires
intergovernmental consultation with
State and local officials. Rural Rental
Housing Loans Program, Number
10.415, conducts intergovernmental
reviews on a case-by-case basis. An
intergovernmental review for this
revision is not required or applicable.
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 1326 Federal Register / Vol. 70, No. 5 / Friday, January 7, 2005 / Rules and Regulations
Direct Final Rule
It is the policy of the Rural Housing
Service (RHS) to publish rules
determined to be non-controversial and
unlikely to result in adverse comments
as direct final rules. RHS policy for
direct final rules was published on
March 27, 2003, at 68 FR 14889. No
adverse comments are anticipated on
the changes in this rule. Adverse
comments suggest that the rule should
not be adopted or that a change should
be made to the rule. Unless an adverse
comment is received within 60 days
from the date of publication, this rule
will be effective 90 days from the date
of publication. If RHS receives one or
more written adverse comments within
60 days from the date of publication, a
document withdrawing the direct final
rule prior to its effective date will be
published in the Federal Register
stating that adverse comments were
received.
Background
RHS administers the Direct Single
Family Housing Loan and Grant
program pursuant to 7 CFR part 3550,
designed to assist very low and low-
income households to obtain modest,
decent, safe, and sanitary housing for
use as permanent residences in rural
areas. Direct loans may be used to buy,
build, or improve the applicant’s
permanent residence. RHS regulations
in 7 CFR part 1924, subpart A, contain
requirements for construction which is
funded with direct RHS loans, including
direct single family housing loans. The
regulation also applies to larger direct
funded construction projects by other
agencies in the Rural Development
mission area. This regulation was
originally promulgated on March 13,
1987 in 52 FR 41833. One of the
requirements in this regulation is that
for construction work performed by the
contract method (where the borrower
contracts with a builder for the
construction), the builder must obtain a
surety bond guaranteeing payment and
performance in the amount of the
contract when the contract exceeds
$100,000. This amount has remained
unchanged since 1987. In 1987, a single
family house constructed and financed
under the direct single family housing
loan program would not exceed
$100,000. Since 1987, construction costs
for single family houses financed by
RHS have dramatically increased so that
now construction costs frequently
exceed $100,000. The requirement that
builders obtain surety bonds when the
construction contract exceeds $100,000
has made it difficult for contractors to
compete for direct single family housing
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projects financed by RHS. While the
regulation contains internal exceptions
for the $100,000 requirement, none of
these exceptions satisfactorily resolves
the cost burden for builders of direct
single family housing.
The revision to 7 CFR
1924.6(a)(3)(i)(A) will facilitate the
process of construction by raising the
threshold when the contractor must
acquire surety bonds. The purpose of
this regulation is to remove the surety
bond requirement for direct funded
single family housing. The new
threshold will be when the contract
exceeds the applicable RHS area single
family housing loan limit as established
pursuant to 7 CFR 3550.63 and the limit
for any particular area is available from
any Rural Development office.
The provisions in 7 CFR
1924.6(a)(3)(i) that require payment and
performance bonds when construction
is under this threshold amount remain
unchanged. RHS has determined that
changing the threshold for payment and
performance bonds provides for more
flexibility, is locality based, borrowers
are adequately protected, and housing
costs are reduced.
List of Subjects in 7 CFR Part 1924
Agriculture, Construction
management, Construction and repair,
Energy conservation, Housing, Loan
programs—Agriculture, Low and
moderate income housing.
■ For the reasons set forth in the
preamble, chapter XVIII, title 7, of the
Code of Federal Regulations is amended
as follows:
PART 1924—CONSTRUCTION AND
REPAIR
■ 1. The authority citation for part 1924
continues to read as follows:
Authority: 5 U.S.C. 301; 7 U.S.C. 1989; 42
U.S.C. 1480.
Subpart A—Planning and Performing
Construction and Other Development
■ 2. Section 1924.6 is amended by
revising paragraph (a)(3)(i)(A) to read as
follows:
§ 1924.6 Performing development work.
* * * * * ACE–7, Attention: Rules Docket Clerk,
(a) * * *
(3) * * *
(i) * * *
(A) The contract exceeds the
applicable Rural Development single
Family Housing area loan limit as per 7
CFR 3550.63. (Loan limits are available
at the local Rural Development field
office.)
* * * * * Office (ACE–110), Small Airplane
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Dated: December 12, 2004.
Russell T. Davis,
Administrator, Rural Housing Service.
[FR Doc. 05–325 Filed 1–6–05; 8:45 am]
BILLING CODE 3410–XV–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 23
[Docket No. CE215, Special Condition 23–
154–SC]
Special Conditions; The New Piper
Aircraft, Inc.; PA–46–350P and PA–46–
500TP; Protection of Systems for High
Intensity Radiated Fields (HIRF)
AGENCY: Federal Aviation
Administration (FAA), DOT.
ACTION: Final special conditions; request
for comments.
SUMMARY: These special conditions are
issued to The New Piper Aircraft, Inc.;
Vero Beach, Florida, for a type design
change for the PA–46–350P and PA–46–
500TP model airplanes. These airplanes
will have novel and unusual design
features when compared to the state of
technology envisaged in the applicable
airworthiness standards. These novel
and unusual design features include the
installation of electronic flight
instrument system (EFIS) displays
Model 700–00006–003 Entegra,
manufactured by Avidyne Corporation,
Inc., for which the applicable
regulations do not contain adequate or
appropriate airworthiness standards for
the protection of these systems from the
effects of high intensity radiated fields
(HIRF). These special conditions
contain the additional safety standards
that the Administrator considers
necessary to establish a level of safety
equivalent to the airworthiness
standards applicable to these airplanes.
DATES: The effective date of these
special conditions is December 23,
2004. Comments must be received on or
before February 7, 2005.
ADDRESSES: Comments may be mailed
in duplicate to: Federal Aviation
Administration, Regional Counsel,
Docket No. CE215, Room 506, 901
Locust, Kansas City, Missouri 64106. All
comments must be marked: Docket No.
CE215. Comments may be inspected in
the Rules Docket weekdays, except
Federal holidays, between 7:30 a.m. and
4 p.m.
FOR FURTHER INFORMATION CONTACT: Wes
Ryan, Aerospace Engineer, Standards
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